BDO survey suggests growing confidence
BUSINESS orders and confidence rallied in October according to the latest Business Trends report by Manchester accountancy firm BDO.
BDO’s Optimism Index, which predicts business performance two quarters ahead, rose to 93.2 in October from 92.5 in September and follows a record low of 89.1 in August.
The Output Index, which predicts short-run turnover expectations, was also up, increasing to 92.1 in October from 91.2 in September, the strongest reading since July 2012.
But both indices remain below the 95 mark that would indicate a return to growth and the nascent recovery is still fragile. Eurozone instability and weak global growth mean businesses face an uncertain outlook, reflected by sentiment in the manufacturing sector, where optimism dipped to 89.2 in October.
Jeff Jones, partner and head of BDO in Manchester, said: “Business confidence is steadily improving so there is cause for cautious optimism. However, manufacturers in particular are fearful for the future. To help, we hope the Chancellor’s Autumn Statement will set out concrete plans for a UK Business Bank to add to the government’s other growth initiatives.”
The indices are calculated by taking a weighted average of the results of the UK’s main business surveys. Taken together the surveys cover over 4,000 different respondents from companies employing approximately five million employees.
